The first quarterly report that was released by Ebay Inc shows that the organization has missed the estimation that was stated by analysts, disappointing forecasters in its sales and gain ratio. With the market of Europe going weak, it is expected that there was a drop in PayPal unit also. In its report, the company revealed that the sales of the first quarter were at $3.75 billion. As per the data gathered and compiled by Bloomberg, the profit ratio got a short fall of $3.77 billion in average rating in accordance to the estimation of analysts. The prediction for the second quarter of Ebay revenue is estimated to stay around $3.8 billion to $3.9 billion.
The growing spree of PayPal got a drop by 18 percent in the reports of first quarter in comparison to its 32 percent in the previous year’s report. The PayPal unit is stated to have taken in much lesser money in every transaction this year, which was also affected and hurt with the slowdown of the economic market. The weak currency of Europe is stated to be the reason for this drop in sales profit, as per the revelation of the Ebay Company. According to Gil Luria, who is the analyst at the Wedbush Securitis Inc. based at Los Angeles, it is stated that there will be slow and sluggish growth in the second quarter also, thus hampering the sales of the company largely.
The stocks of Ebay which is located at San Jose of California got to witness a drop of around 2.8 percent which counts for $54.52 value in the trading regions of German. There was decline of average 1.6 percent, making for $56.10 at the closing of the market yesterday at New York location. Compared to the rise of 8.8 percent which was witnessed at the Standard & Poor’s 500 Index in report of last year, this year the stocks have gained by 10 percent till now.
It was estimated and speculated by analysts that there will be a profit of almost 61 percent in the second phase, counting for increase of 63 cents against each share. Talking about the fall of the market, Bob Swan who is the head financial officer of the company says that a weaker European currency is expected in the coming days also. He adds that European market has been comparatively slower than it was estimated or expected in relation to last year.